Gazprom has traditionally sold gas to its European customers under long-term, oil-indexed contracts. However, in recent years it has been forced to adapt to changing market rules in Europe and an increasingly competitive global gas market.
As part of this adaptation, Gazprom launched its Electronic Sales Platform (ESP) on the 20th of September 2018. From this platform, Gazprom has been selling spot volumes to new and existing counterparties, for delivery to 10 destinations in central and NW Europe.
According to the results of the first year, Gazprom Export has sold more than 12.7 bcm of gas via the ESP, which is a significant share of Gazprom's supply to European countries. 62 companies have already registered on the ESP.
The unique geography of the delivery points, that the ESP provides, enhances their liquidity. A wide range of delivery periods is available to the ESP clients – from day-ahead to quarter-ahead contracts. The deals on the ESP can be priced in several currencies, including rubles.
This instrument reduces intra-day and seasonal volatility on the physical gas markets. In short-term Gazprom Export plan to expand the geography of sales as well as to enhance offered terms of deliveries.
By 9 September 2020, the total sales volume via the ESP exceeded 40 bcm of gas.